26 Nov 2018
TM reports operational improvement for 3Q2018 despite challenging environment
Key Highlights of 3Q2018:
Key Highlights of YTD 2018:
Announces Revised Dividend Policy |
Telekom Malaysia Berhad (TM) today announced its financial results for the quarter ended 30 September 2018. The Group saw steady operational performance, amidst heightened challenges in its operating environment, namely industry and market challenges impacting its revenue.
The Group held revenue steady, at RM2.95 billion in 3Q2018, 0.3% higher from RM2.94 billion in the previous quarter, on the back of higher data as well as other telecommunication related services revenue.
Group Reported Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for 3Q2018 grew 11.3% to RM941.4 million as compared to RM845.9 million in 2Q2018 mainly due to lower operating costs. Group Normalised EBITDA, which excludes non-operational items, increased 13.1%, at RM930.9 million.
However, due to impairment loss on wireless and fixed network assets, the Group recorded Loss Before Interest and Tax (LBIT) at RM631.8 million for 3Q2018. Without the reported impairment and other non-operational items, the Group’s Normalised Earnings Before Interest and Tax (EBIT) is at RM315.6 million for 3Q2018, a 39.4% increase against Normalised EBIT of RM226.4 million in 2Q2018.
Consequently, the Group reported Loss After Tax and Non-controlling Interests (LATAMI) of RM175.6 million compared with RM102.0 million Profit After Tax and Non-controlling Interests (PATAMI) in the prior quarter. TM’s core net profit, or Normalised PATAMI excluding non-operational items, stood at RM266.4 million, a 71.0% improvement sequentially.
The total capital expenditure (CAPEX) investment for the first nine months of 2018 at RM1.32 billion, or 15.1% of revenue. This is within TM’s full year capex guidance of 19-20% of revenue. By asset type, access comprised 62% of total spending, followed by core network at 15% and the remaining 23% was for support systems.
Imri Mokhtar, Acting Group Chief Executive Officer, TM said: “We continue to face various headwinds from competitive market dynamics. Nonetheless, we held revenue steady over the quarter, and saw our cost reduction initiatives bearing fruit, by recording improved operational performance for QoQ and YoY.
However, in light of the continued pressure from industry and market challenges and its impact on our revenue thus far, we have taken a prudent view, by undertaking the impairment of our network assets – this resulted in close to a RM1.0 billion impairment loss this quarter.”
“The operational improvement in 3Q2018 is testament to the Group’s commitment to the four (4) pillars of our Performance Improvement Programme (PIP 2018) - Revenue Uplift / Preservation, Sustained Profitability, Improved Cash Flow and Increased Productivity that will navigate us through these headwinds. We are rationalising our business, reducing operating costs and focusing our resources on the opportunities that will have the most impact,” Imri elaborated.
“We currently have 2.29 million broadband customers and our unifi customer base continues to grow at 1.26 million as at end of 3Q2018 as compared to 1.06 million as at the end of the corresponding quarter last year. In terms of convergence, we saw more customers moving up the value chain with having triple-play services and above, evidenced by our convergence penetration now at 48% of TM’s household penetration compared with 39% this time last year,” he added.
“We will continue to strengthen our products and services portfolio and we are stepping up how we aggressively compete in the market, with greater sales and Go-To-Market activities on the ground. We are also working hard to reach more customers with various fit-for-purpose technologies to ensure that everyone can have the benefit of higher broadband speeds and enhanced experience. On top of that, we also have continuous engagements with the Ministry and the regulator to work toward mutually beneficial outcomes - for an improved broadband experience and help build a more balanced and inclusive digital nation, whilst at the same time balancing the business sustainability of the Group and the interests of our other stakeholders.”
TM also announced a revised dividend policy which states that the Company intends to distribute yearly dividends of 40 to 60% from its PATAMI. Dividends will be paid depending on overall business and earnings performance, capital commitments, financial conditions, distributable reserves and other relevant factors. The dividend policy will take effect from the next dividend declaration.
“This is a matter of great importance to us. In light of the current operating landscape and after careful consideration of the potential impact on our earnings alongside our efforts to transform the Company to adapt thereto, the Board has determined the review of our dividend policy to support TM’s long-term strategic objectives.”
As Malaysia’s Convergence Champion, TM remains committed to fulfilling Malaysians’ digital and communication needs of all customer segments i.e., consumer, SME, corporate enterprises, public sectors, access seekers etc via our business clusters, unifi (consumer & SME), TM ONE (Enterprise and Public sectors) and TM Global (Global and Wholesale).
Prospects for the Current Financial Year Ending 31 December 2018
The recent industry challenges and market environment have had major impact to the overall revenue estimates and earnings of TM Group in the financial year. TM anticipates that the challenging environment will persist for both its retail and wholesale segments. In the midst of these challenges, TM will continue to focus towards strengthening performance of its core business and operations.
YOU MAY ALSO LIKE
TM inculcates creativity and interest in science among students
Science made easier with TM Nano Maker Kit Learning process: Briefing session on the usage of Nano Maker Kit where students can connect the Kit to their smart devices via Bluetooth to collect experiment results data. Thrilled: Participating students conducting an experiment on force, acceleration and momentum of a car crash. In action: An outdoor experiment on water rocket launching takes the interest of the students as they measure the rocket acceleration using Nano Maker Kit. Telekom Malaysia Berhad (TM) under its Corporate Responsibility (CR) initiatives, recently collaborated with its partner, Creative Minds - a company specialised in Science, Technology, Engineering and Mathematics (STEM) subjects – to conduct a programme called TM Nano Maker Kit, involving several schools around Kuala Lumpur and Selangor. This innovation-oriented programme is an initiative by TM to inculcate interests in science and technology among the students. The programme also marked its continued commitment in promoting education exc ellence and empowering the learning of STEM in the classroom. Commenting on the programme, Izad Ismail, Head of Corporate Responsibility & External Stakeholder Management, Group Brand and Communication, TM said, “This programme requires students to innovate and create activities related to science and technology. Students in all the 10 participating schools around Kuala Lumpur and Selangor were indeed very creative. They have the potential and capabilities to innovate but they need proper guidance to express the innovation. We hope that the training and learning process shared with them during this programme will encourage them to be even more creative and excel in Science and Technology subjects.” TM Nano Maker Kit programme provides a platform for the students to collect and analyse experimental data conducted in Physic and Mathematics. TM Nano Maker Kit also aimed to boost the students' abilities through hands-on activities which involve the usage of a technology known as ‘Data Logging’ to collect real-time data for the students to analyse. There are many parameters and types of data that can be tested using the TM Nano Maker Kit, including temperature, altitude, speed, weather, acceleration, pressure, light intensity and magnetic fields. The TM Nano Maker Kit saw participation of more than 300 students from 10 schools around Kuala Lumpur and Selangor. The schools involved, which served as the pilot group were SMK Dato’ Onn, SM Sains Banting, SMK Keramat Wangsa, SMK Batu Laut, SMK Bandar Tasik Selatan, SMK Bandar Seri Putra, SMK Bukit Kucing Tengah, SMK Saujana Impian, SMK Dengkil and MRSM Sungai Besar.
Sultan Perak launches Telegraph Museum in Taiping, Perak
Telekom Malaysia Berhad (TM) via its foundation, Yayasan Telekom Malaysia (YTM), continues its role to preserve arts, culture and national heritage when the Company today officially launched its second museum - Telegraph Museum - the first of its kind in the country, in Taiping, Perak. The launch of the Telegraph Museum was graced by HRH the Sultan Perak, Sultan Nazrin Muizzuddin Shah. Also present at the launch were HRH Sultanah of Perak, Tuanku Zara Salim, Raja Muda Perak, Raja Jaafar Raja Muda Musa and Raja Di Hilir Perak Raja Iskandar Dzulkarnain together with Tan Sri Dato’ Seri Dr Sulaiman Mahbob, Chairman, TM who also the Chairman of YTM, Datuk Bazlan Osman, Acting Group Chief Executive Officer, TM and Abd Hamid Hashim, Director of YTM. The launch of Telegraph Museum is a historical event for YTM after the opening of the Telekom Museum or also known as Muzium Telekomunikasi Negara in Kuala Lumpur in 1994. Tan Sri Sulaiman in his speech said, “The role of the museum has changed over the years, expanding its focus beyond presenting things of the past to include creating a connection with the present and a glimpse into the future. Telegraph Museum is a space that provides us with the knowledge on telegraph’s history since 18th century. The Post & Telegraph Department (P&T) has played an important role towards the development of National’s telecommunication system and TM through YTM has the responsibility to maintain and preserve our nation’s heritage for future generation.” “The establishment of the Telegraph Museum is set to be the latest tourist attraction in Perak specifically and Malaysia, generally. The museum features the history of telegraph communications system including its maiden breakthrough here and how the technology has contributed to the development of the nation. We hope that the both museums; Telekom Museum and Telegraph Museum will be the places for students, researchers and the communities within and outside the country to deepen their understanding on the country’s telecommunication heritage and telegraph communications system,” he added. YTM’s efforts in establishing this Telegraph Museum is intended to restore and conserve the historic building, built in 1883 that housed the first Post Office & Telegraph (P&T) Office in Malaya, which then also became the first office of Telekom Malaysia. This 135 years old Telegraph office represents national identity and the highest historical moment in the earliest telecommunications history in the country. The two storey building has also been used as Jabatan Telekom Club Office and Telekom Malaysia Technical Operations Office before conservation works of the heritage building by maintaining its original shape during the 18th century. Among the interesting artifacts being showcased at the Telegraph Museum is the 1870s submarine cable which was the earliest cable in the world that uses insulation materials from the Gutta Percha tree extract. Visitors can also take a tour around the museum to see the telegraph transmitor and reception tools as well as other peripherals related to telegraph communications system back then while appreciating the history of telegraph and the benefits it brought to the nation until the telegram service was terminated in 2012. Malaysian citizens can purchase the entrance tickets at RM8 for adults and RM5 for children while for non-Malaysians, the ticket price is RM15 per person. In conjunction with the launch of the Telegraph Museum, TM also collaborated with Pos Malaysia in issuing a limited edition stamp collection kit that features the Telegraph Museum which can be purchased at RM50.80 per set from 98 Pos Malaysia Offices nationwide. With the launch of this second TM museum, TM has proven their commitment in conserving this historic heritage. The Company believes that these initiatives by YTM such as the establishment of the Telekom Museum and the Telegraph Museum will greatly benefit in national development, in line with our unique role as a partner in nation building.
unifi is now available in Mukah!
TM continues to empower the digital transformation in sub-urban and undeveloped areas Telekom Malaysia Berhad (TM) continues to strengthen its position as Malaysia’s Convergence Champion, bringing unlimited experiences, unmatched choices and unbeatable value to customers in Sarawak with its comprehensive suite of High Speed Broadband service offerings when the Company, through TM Sarawak recently expanded its unifi service to Mukah Division, in Mukah, Sarawak. A launching ceremony to celebrate the milestone was held at the Resident Office for Mukah Division and graced by Hajah Hamdiah Haji Bakir, the Resident of Mukah Division, together with Jafer Sadig Abdul Lathiff, State General Manager, TM Sarawak and Awang Abdul Khairulannuar, Business Head, TM Sibu. In her speech, Hajah Hamdiah said, “The unifi service offering in Mukah is timely as Sarawak is currently embarking on digital economy to further propel its economic growth. The telecommunication infrastructure to support high-speed internet connectivity needs to be made available in order for digital economy to be adopted successfully for the benefits of the business and residential communities in Mukah. As the nation’s trusted telecommunications services provider, with its extensive network and expertise, we believe TM is more than capable to facilitate our digital transformation journey. We hope TM will continue to further expand its unifi service throughout the state not only covering the urban areas but also the sub-urban and rural areas to bridge the digital gap with their urban counterparts.” Meanwhile, Jafer Sadig said: “The expansion of TM’s unifi service in Mukah fulfills the demand from our customers and it will enable the local communities, specifically in Mukah, Sarawak to enjoy fully converged communications services; unifi Broadband, unifi Mobile, unifi Wifi and unifi TV. The availability of unifi in Mukah is hoped to spearhead Sarawak’s Digital Economy, bridging the digital gap, connecting people wherever they are via digital connectivity, encouraging online e-commerce, e-banking and e-payments; true to our brand promise of Making Life and Business Easier, for a better Malaysia. We also would like to take this opportunity to acknowledge the hard work and dedication of the entire Warga Keluarga TM who have made this achievement possible. As the nation’s key partner in supporting the Government’s inspiration of providing High Speed Broadband access with an affordable price, we are committed to transform the landscape of Sarawak with advanced telecommunications services to spur the economic growth via digital opportunities at the urban areas as well as the sub-urban areas.” With this expansion, unifi is now available in Mukah in key areas which include Politeknik Mukah until Kingwood Resort, Menara Pehin which houses most of the State Government departments in Mukah including Regional Corridor Development Authority (RECODA) - the administrator for Sarawak Corridor of Renewable Energy (SCORE). The expansion will also include Jalan Orang Kaya Setiaraja and Jalan Petanak which will receive the service by end of September 2018. Further expansion will cover other areas such as Jalan Medan Setiaraja, Jalan Tellian, Jalan Hj Latip, Jln Kampung Pinang, Jalan Mohammad Fauzi, Taman Pelita Jaya and Jalan Mukah/Oya while other locations will be fiberised by unifi in stages. “In line with the Broadband Improvement Plan, I’m also excited to share that our new unifi package, unifi Basic are now available for everyone at an affordable price of RM79 per month, bringing Malaysia in the group of other neighboring Asian countries (other than City State Countries) which offer fixed high speed broadband of 30Mbps at an affordable price,” Jaffer continued. New unifi Plans unifi is now available with simplified offerings in two (2) new plans to cater to the dynamic needs of all customers. The existing unifi Basic plan which offers the speed of 30Mbps (60GB quota) at RM79 per month is now open for all. Subscription to this plan will come with 17 free channels on playTV@unifi app which can be downloaded on Apple Store or Google Play. For customers who prefer unlimited quota to cater to their advanced digital lifestyle such as online entertainment, home surveillance, e-sports among others, the new unifi 100Mbps plan is available at only RM129 per month. This will come with unifi TV’s choice of premium entertainment packages with either Aneka Plus, Varnam Plus or Ruby Plus package. In Sarawak, unifi is currently available at 24 areas comprising more than 172,000 premises passed in 24 areas such as Kuching, Samarahan, Sri Aman, Sibu, Bintulu, Miri, Limbang among others. To date, there are over 75,000 unifi customers in Sarawak. To find out more on unifi’s latest offerings, please visit unifi.com.my.
NEWSLETTER
Just drop your details and stay updated with the world of Telekom Malaysia. We promise – no spam!